BOEMRE Ups OCSLA and OPA Penalties

Wednesday, June 29, 2011

The Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) announced that the maximum civil penalty rate for Outer Continental Shelf Lands Act (OCSLA) violations will increase from $35,000 to $40,000 per day; and from $25,000 to $30,000 per day for Oil Pollution Act (OPA) financial responsibility violations. The increases coincide with adjustments in inflation, as required by OCSLA and OPA. The Obama administration has requested that Congress pass legislation to further raise the maximum civil penalty rates beyond the rate of inflation.
“Even with the inflation adjustment, which is the limit of our current regulatory authority, our civil fine authority is inadequate. That view is shared by energy companies operating on the OCS. The inadequacy of our civil authority hampers our ability to effectively regulate offshore activities, and renders such fines a trivial nuisance rather than an effective deterrent” said BOEMRE Director Michael R. Bromwich. “Our hope is that new legislation will raise this amount significantly, which would enable us to use the threat and reality of civil fines as viable methods to encourage compliance with offshore oil and gas rules and regulations and meaningfully deter violations.”
BOEMRE can impose civil penalties when an operator fails to correct a recorded violation or commits a violation that constitutes a threat of serious, irreparable, or immediate harm or damage to life, property, any mineral deposit, or the marine, coastal, or human environment. BOEMRE also imposes fines if there is evidence that operators do not have adequate financial responsibility to meet maximum liability amounts contained in OPA. Fines are assessed on a maximum per day rate, but can be compounded if there are multiple infractions.
OCSLA directs the Secretary of the Interior to adjust the maximum civil penalty amount at least once every three years to reflect any increase in the Consumer Price Index prepared by the U.S. Department of Labor. BOEMRE is also authorized to impose civil penalties for failure to comply with financial responsibility regulations that implement OPA and those amounts are to be reviewed and adjusted on a 4-year cycle.
The notice is available for review in Federal Register: http://www.archives.gov/federal-register/public-inspection/index.html. BOEMRE will issue a notice to offshore oil and gas operators tomorrow, to coincide with publication in the Federal Register, informing them of the changes and provide a list of infractions with the corresponding fine amount. That notice will be available at: http://www.boemre.gov/ntls/index.htm.  
 

(Source: BOEMRE Press Release)

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

DP World Launches $1.2 bln Sukuk Issue to Cover Tender

Dubai-based ports operator DP World launched a seven-year $1.2 billion sukuk issue on Tuesday, a document from lead managers showed.   The issue, structured to

Baltic Index Falls on Weaker Demand

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, fell on Tuesday as demand for larger vessel segments declined.

China Shipbuilding Plans Major Restructuring

State-owned China Shipbuilding Industry Corp (CSIC) is undertaking a major restructuring as it grapples with an industry downturn, and it will be the largest restructuring

News

Winners of Ferry Design Contest Selected

Winners of International Student Design Competition for a Safe Affordable Ferry to be revealed at the Ferry Safety and Technology Conference   Dr. Roberta Weisbrod,

Maritime Consolidation: Palfinger Aims to Acquire Harding

As maritime markets continue to struggle, merger and acquisition activity should heat up. Today, Austria's Palfinger Group announced that it intends to acquire

Glosten Promotes Lamkin to Senior Marine Consultant

Seattle-based naval architecture and marine engineering consultancy Glosten has promoted Bradley G. Lamkin, PE to Senior Marine Consultant. As a Senior Marine Consultant

Government Update

Japan, Canada Share "Serious Concerns" on South China Sea-PM Abe

Japan and Canada share "serious concerns" over reclamation and militarisation in the South China Sea, Japanese Prime Minister Shinzo Abe said on Tuesday, in an

Atlantic Hurricane Season Could be More Active

The Atlantic Ocean could be gearing up for an active hurricane season, meaning North American residents may want to pay attention. In recent years, single hurricanes

Mumbai Port to Revamp Int'l Cruise Terminal

Indian Merchants’ Chamber provides a platform to urban developers to address various issues pertaining to the restructuring of Mumbai City Mumbai, May 23, 2016:

 
 
Maritime Careers / Shipboard Positions Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1091 sec (9 req/sec)